Foreign Exchange Market Update 08/05/2012

Last week the Pound declined against US Dollar and but continued to gain against the Euro in the foreign exchange market. The GBP/EUR exchange rate opened up at 1.2300 from Monday to trade up towards 1.2195 during the week before closing back around 1.2333 on Friday. The GBP/USD exchange rate however opened up at 1.6283 on Monday to decline across the course of the week closing on Friday’s trading session around the 1.56145 level. The Pound also continued its gain against the Australian dollar and against the New Zealand Dollar in the foreign exchange market last week. The GBP/NZD exchange rate picked up from 1.9834 to trade higher at 1.20347 by the close of the week. The GBP/AUD exchange rate opened up from 1.5590 and finished the week higher at 1.5841.


The week ahead will see some key economic data released from the UK. The first significant data to look out for will be released on Thursday with the Industrial Production (Mar) due at 09:30 GMT, where economist are expecting a decline from -1.4% to 1.3% for the year-on-year figure. Also we have the Bank of England Asset Purchase Target and Rate Decision due at 12:00 GMT. At the end of the week we have the release of the Producer Price Index due at 09:30 GMT, where economists will be expecting a decline from 2.5% to 1.9% for the Core Output Figure.


This morning there is no economic data scheduled from the UK.


The Euro declined against both the US Dollar and against the Pound throughout last week in the currency exchange market. The EUR/USD exchange opened up from 1.3238 at Monday’s open and traded lower towards 1.3084, before trading at 1.3094 by the close of the European trading session on Friday.


The main market focus for the week ahead in Europe will begin on Wednesday, with the release of the German Trade Balance (Mar) due at 07:00 GMT. Thursday we have the release of the ECB May Monthly Report due at 09:00 GMT and to end the week we have the release of German Consumer Price Index due at 07:00 GMT on Friday.


Later this morning we have the German Industrial Production (Mar) due at 11:00 GMT, where economists are expecting a decline from -1.0% to -1.2%.


The US Dollar gained against the Pound and against the Euro currencies during last week. This week’s key economic data to look out for will begin on Thursday with the Trade Balance due to release at 13:30 GMT and then followed by the US Monthly Budget Statement at 19:00 GMT. End of the week on Friday we have the Producer Price Index due at 13:30 GMT, followed by University of Michigan Confidence due at 14:55 GMT.


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This Daily Market Update is brought to you by The Market Team @ KBRFX –Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.